Bulls n Bears Daily Market Commentary : 25 February 2020

Wed Feb 26 01:29:26 CAT 2020

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Bulls n Bears Daily Market Commentary : 25 February 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$20,273,259.95 with foreign buys at ZWL$7,546,235.00 and
foreign sales were ZWL$6,339,322.65 Total trades were 202

The All Share index ended the day on a lower note after dropping 1.74 points
to close at 483.58 points. DAIRIBOARD ZIMBABWE LIMITED  dropped $0.1175 to
$0.8600, DELTA CORPORATION eased $0.1061 to close at $7.4033 and PADENGA
HOLDINGS was $0.0783 weaker at $6.2017. Two more counters to lose ground
were OK ZIMBABWE LIMITED  which traded $0.0576 lower at $2.0305 and ECONET
WIRELESS  which declined by $0.0503 ending at $2.9499.

Trading in the positive was RIO ZIM  which rose by $0.6350 to $4.7000, OLD
MUTUAL LIMITED gained $0.5161 to end at $43.6217 and POWERSPEED was $0.1015
firmer at $0.6125. SIMBISA BRANDS also increased by $0.0347 to settle at
$3.6821 and SEEDCO INTERNATIONAL  closed $0.0200 stronger at $4.6000.

 <http://www.nicozdiamnond.co.zw/> 

  Global Currencies & Equity Markets

South africa

South Africa's rand weaker ahead of budget speech

(Reuters) - The South African rand weakened on Tuesday, reflecting
nervousness before a budget speech this week and global worries about the
spread of coronavirus.

The rand was down 0.3% at 15.2100 per dollar by 1630 GMT, extending losses
from Monday and mirroring falls in other emerging market currencies as the
virus outbreak gathered pace beyond China.

At home, traders were nervous that a bleak fiscal picture in Wednesday’s
budget speech by Finance Minister Tito Mboweni could trigger a downgrade to
“junk” of South Africa’s credit rating by Moody’s, the last agency to rate
the country investment grade.

A Reuters poll last week predicted Mboweni would present an updated budget
deficit forecast of 6.2% of gross domestic product for the current fiscal
year, up from 5.9% in October.

Local stocks failed to recover ground on Tuesday, a day after touching a
two-month low.

The Johannesburg Stock Exchange’s Top-40 Index ended the day less than 0.1%
higher at 49,303 points, while the All-Share Index was down 0.1% to 54,809
points.

Bonds were little changed, with the yield on the benchmark 2026 government
issue up 0.5 basis points to 7.865%.

Uganda

Ugandan shilling weakens on uptick in demand by energy importers

(Reuters) - The Ugandan shilling weakened slightly on Tuesday, undercut by
an uptick in demand for hard currency from energy firms and other importers.

At 0942 GMT commercial banks quoted the shilling at 3,675/3,685, compared to
Monday’s close of 3,665/3,675.

GLOBAL MARKETS

Stocks, oil fall further on accelerating coronavirus concerns

(Reuters) - Stocks and oil prices tumbled again on Tuesday and the benchmark
U.S. debt yield hit a record low on growing concern about the effects of the
spread of coronavirus on the global economy.

The market sell-off followed the largest losses in stocks in over two years
on Monday and accelerated after the U.S. Centers for Disease Control and
Prevention said Americans should begin to prepare for community spread of
the disease.

The Japanese yen strengthened against the dollar for a third session
running, in a sign that traders are in search of relatively safer assets.

The flu-like virus has now infected more than 80,000 people, 10 times more
cases than the SARS epidemic in 2003. Several European countries were
dealing with their first infections, feeding worries about a pandemic.

The World Health Organization, however, has said the epidemic in China,
where it began in December, peaked between Jan. 23 and Feb. 2 and has been
declining since.

On Wall Street, where stocks fell the most in two years on Monday, the S&P
500 posted its largest back-to-back drop since August 2015.

The Dow Jones Industrial Average fell 879.44 points, or 3.15%, to 27,081.36;
the S&P 500 lost 97.68 points, or 3.03%, to 3,128.21; and the Nasdaq
Composite dropped 255.67 points, or 2.77%, to 8,965.61.

The pan-European STOXX 600 index lost 1.76% and MSCI’s gauge of stocks
across the globe shed 2.31%.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.14%
higher, while Japan’s Nikkei futures lost 0.34%.

BET ON RATE CUTS

The risks are such that bond markets are betting that central banks will
have to ride to the rescue with new stimulus.

Futures for the Federal Reserve funds rate have surged in the last few days
to price in a 50-50 chance of a quarter-point interest rate cut as early as
April. In all, they imply more than 50 basis points of reductions by year
end.

The indication of falling U.S. rates hit the dollar against a basket of its
peers.

The dollar index fell 0.361%, with the euro up 0.27% at $1.0881.

The yen strengthened 0.54% versus the greenback to 110.15 per dollar.
Sterling was last trading at $1.3002, up 0.58% on the day.

The rush to bonds dragged yields on 10-year U.S. Treasury notes to a record
low of 1.307%. The U.S. benchmark last rose 11/32 in price to yield 1.3421%,
down from 1.377% late on Monday.

The 30-year bond set a fresh record low at 1.786 and last rose 17/32 in
price to yield 1.8135%.

For the first time, the 10-year yield on Municipal Market Data’s benchmark
scale for top-rated, tax-exempt municipal bonds fell under 1% to .98%.

Gold ran into profit-taking after hitting a seven-year peak overnight, and
last dropped 1.6% to $1,634.59 an ounce.

Oil prices continued to fall as demand concerns linked to the virus’ spread
outweighed supply cuts.

U.S. crude fell 3.11% to $49.83 per barrel and Brent was last at $54.76,
down 2.74% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold retreats from multi-year peak, but virus fears remain

(Reuters) - Gold fell over 1% on Tuesday as the metal’s rally to 7-year
highs in the last session prompted profit-taking even as worries about the
coronavirus kept investors anxious about the fate of global economy.

Spot gold slipped about 1% to $1,644.40 per ounce by 01:56 p.m. EST (1856
GMT). U.S. gold futures settled down 1.6% at $1,650.

On Monday, the metal surged as much as 2.8% to $1,688.66, its highest since
January 2013.

Mainland China had 508 new confirmed cases, up from 409 on Feb. 23, bringing
the total confirmed cases to 77,658.

The rapid spread of the virus beyond China has heightened fears over its
impact on the global economy, driving some bets that the U.S. Federal
Reserve will be pressed to cut interest rates to cushion the hit.

Countries around the world are stepping up efforts to stop a pandemic of the
virus that emerged in China and is spreading in Europe and the Middle East.

Gold in euros and gold priced in sterling slid from all-time peaks hit on
Monday.

Among other precious metals, palladium jumped 3% to $2,707 per ounce.

Silver fell 2.3% to $18.20 an ounce, having touched its highest since early
September on Monday. Platinum slid 3.3% to $931.7.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
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subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
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any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

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